It's a popular meme but IMHO does not reflect university-level analysis. That exists, but reductionist arguments merely take the worst of someone or something and blow that up to 100%.

For example, everyone feels self-interest, but the reductionist claim it that it's all we are. A simple look at the evidence shows that it's manifestly untrue; people are much more than self-interested.

Similarly universities do and are much more. I know university students and they are learning a lot - I'm very impressed with the thought and creative effort put into the cirriculum.

The reductionists really hurt themselves and people who listen to them. They wall themselves off from all the good in the world, including education.